River Valley & Queenstown GLS sites to tops 2024 land sales

Ten new sites, for private residential housing, will be offered under the Government Land Sales Program (GLS), in the first halves of 2024. Eight are confirmed and two are on the reserve list.

Analysts have taken note of a parcel along Margaret Drive and a site for an executive condominium (EC) on Jalan Loyang Besar.

The River Valley Green, or parcel A, plot measures 0.93 hectares and is capable of yielding 380 residential units. The site offers direct access to Great World MRT and is only a short distance from Singapore’s Orchard shopping district. It is expected that it will launch in march next year.

Analysts are expecting a large amount of interest, due to the central location and accessibility.

CanningHill Piers, Riviere, and Irwell Hill Residences – all previous condo launches near the site – attracted a large number of buyers.

CanningHill Piers, for example, sold around 77 percent of its 696, at an estimated average price of S$3,000 (psf) per square foot during its launch in November 2021.

The River Valley parcel is also more appealing to developers than Zion Road’s (Parcel a) nearby site which released for tender on a Monday. River Valley is not only smaller, meaning a lower cost, but also developers don’t have to build long-stay serviced apartment, he explained.

River Valley is an irregularly shaped site that requires more creativity and innovation in the design of the project than one that has a regular shape.

The parcel located along Margaret Drive is approximately 0.95 ha in size and could generate 460 dwellings. This site is only a few minutes’ walk from Queenstown MRT. It includes at least 500 square metres for childcare. The site is anticipated to launch in 2024.

The first time land has been sold in this area since 2017 if the Margaret Drive parcel is sold.

In May 2017, Logan Property Holdings from Hong Kong and Nanshan Group of China won a bidding war for the Stirling Road, site where now stands Stirling Residences 99-year leasehold. This translated to S$1,050.70 PSF per plot ratio at the time.

In Queenstown where the Housing & Development Board resale price is some of its highest, a new condominium project can take advantage of upgrader demand. By doing so, the buyers can use their proceeds (from resale bonuses) to enter the private property market.

Jalan Loyang Besar EC is a 2,84 ha area that will produce around 710 units. Pasir Ris MRT, Pasir Ris Mall as well as White Sands and Pasir Ris Mall are all easily accessible.

Observers predict that this site, when it is put up for bid in May of 2024, will be one the most highly contested. The only EC website on the confirmed listing, this segment is expected to be watched closely by developers, thanks to its attractive value proposition.

There was stiff competition to buy the last EC land in Tampines St 62, parcel B. In October, the tender attracted 9 bidders with a highest bid of S$543.28m. That’s a land price of S$721/sf/ppr record.

A strong demand for Pasir Ris was predicted, since the last EC in Pasir Ris took place in 2013 and the 99-year leasehold Sea Horizon.

ECs have also become the most popular form of hybrid home for mass market consumers, especially upgraders and new-home buyers.

The H1 2024 confirmed list of supply includes five more residential sites. This includes a mixed development on Tampines Street 94; and a site in Media Circle Buonavista for apartments with long-term service. They are thought to be of a palatable size.

The Tampines Street 94 property is a commercial and residential development that spans over 2.35 hectares. There are minimum requirements for childcare and retail space, which amounts to 650 square meters. It is expected to open in June 2024.

As the number of residents in the area grows, it is expected that Tampines will be the only mall with a major department store within 800 metres.

This could be a good site for developers seeking heartland exposure. This plot might also have pent up demand in housing as there aren’t any GLS sites around for about 20 years.

Also confirmed are sites in Canberra Crescent (375 homes), Dairy Farm Walk (530 homes), and Tengah Park Avenue (860 homes).

The two sites that have been added to H1 GLS’s reserve list are one at River Valley Green (for 575 homes) and another on Bayshore Road. Sites listed on the Reserve List are only made available for sale if their developer’s application includes a minimum price the government is willing to accept.

Market watchers say that between the two parcels the Bayshore Road lot is likely to be put out for bid.

Bayshore will be selling the first private housing lots in the area. Due to its proximity East Coast Park as well as the upcoming Bayshore Metro station, he expects developers and buyers to be keenly interested.

In this precinct developers are looking for a competitive edge.

Tay explained that Bayshore Road could also be attractive to developers because they will know that it can be sold with a premium price due to development on Long Island and off the coast of Singapore.

In total, this latest round GLS programme is expected boost private home sales, including executive condos. It will go up by 5.6 percent to 5,450 from 5,160 unit in H2-2023. 1 035 units of the 5,450 were carried forwards from the GLS Programme H2-2023, and 4,415 from new sites.

The confirmed list is at its highest level since H2 of 2013.

It is important to not oversaturate this market. The immediate future projects are also in mind.

The government will be able to regulate the bids for land and keep prices low by providing a sufficient number of lots.

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